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Trumps threatened car tariffs could add thousands to sticker price

Related: Ross says it’s too early to say if auto tariffs will be imposed “Simply put, auto tariffs are a massive tax on consumers. Industry analyses show that a 25% tariff would raise the price of an imported car nearly $6,000 and the price of a U.S.-built car $2,000,” said Jennifer Thomas, vice president of federal government affairs at the Alliance of Automobile Manufacturers. The average transaction price of a new full-size car in December was $34,113, according to Kelley Blue Book. The industry group is composed of both U.S. auto makers like General Motors GM, -1.40%  and Ford F, -0.46%  as well as the foreign companies such as Toyota TM, -0.24%  and Mazda. Together, they represent 70% of new car sales in the U.S. It’s also fair to point out that such tariffs haven’t destroyed the part of the auto market where they already exist. There’s a 25% tariff on light trucks, and yet the most popular selling vehicle in the U.S. is the Ford F-150 pickup truck. (Canada and Mexico are excluded from the tariffs due to the North American Free Trade Agreement.) The F-150 starts at just under $29,000 and can cost up to $70,000, according to Kelley Blue Book.

For the original version including any supplementary images or video, visit https://www.marketwatch.com/story/heres-how-much-trumps-threatened-car-tariffs-would-add-to-cost-2018-07-19